Ethereum's Market Capitalization and Trade Volume
Ethereum (ETH) currently holds a market capitalization of $271 billion, making it a significant player in the crypto economy. With a 24-hour trade volume of approximately $17.54 billion, Ethereum's presence is undeniable. However, recent fluctuations in trade volumes and price range, which has been between $2,254 and $2,331 in the last 24 hours, indicate a market grappling with investor sentiments and external factors.
Ethereum's Price Analysis
As of December 15, 2023, Ethereum's price stands at $2,259. When analyzing the oscillators and moving averages, a mixed picture emerges. The 4-hour and daily charts reveal patterns of consolidation and a short-term downtrend.
Technical Indicators
Examining Ethereum's technical indicators, the relative strength index (RSI) currently sits at 42.9, the stochastic at 17.9, and the commodity channel index (CCI) at -108.5. These indicators hover in the neutral to bearish territory, suggesting a lack of strong momentum in either direction for Ethereum's price. This situation indicates a period of uncertainty or consolidation within the market.
Moving Averages Analysis
A detailed look at the moving averages for Ethereum reveals a predominantly bearish sentiment. The exponential moving averages (EMAs) and simple moving averages (SMAs) for 10, 20, 30, 50, and 100 days primarily signal a negative tone, except for the 100-day SMA and 200-day EMA, which indicate some positivity. This mixed outlook suggests a complex market environment, where short-term bearish trends are contrasted with potential long-term stability or growth.
Daily and 4-Hour Charts
On the daily ETH/USD chart, a recent high of approximately $2,407 and a significant low of around $1,929 are evident. The alternating lows and highs reflect market indecision or consolidation. The latest drop on the daily chart points to bearish sentiment, but without further context, it is difficult to determine if this marks a reversal or a mere pullback.
The 4-hour ETH/USD chart provides a more granular view, with a recent high near $2,335 and a low at about $2,146. The prevalence of volatility and lower highs suggests a short-term downtrend. However, inconsistent volume patterns provide no clear indication of a trend reversal or continuation, adding to the complexity of the current market scenario.
Bullish Outlook for Ethereum
Despite the complexity and uncertainty in the current market, several indicators provide a cautiously optimistic outlook for Ethereum. The notable bullish signals from the 100-day SMA and 200-day EMA suggest underlying strength and potential for long-term growth. Additionally, Ethereum's substantial market capitalization and robust trade volumes indicate continued investor interest and market confidence.
Bearish Outlook for Ethereum
On the other hand, the predominance of negative signals across most short-term moving averages, combined with the neutral to bearish positions of the RSI, Stochastic, and CCI, paints a more cautious picture for Ethereum's immediate future. The recent trend of lower highs and the dominance of red candles in the 4-hour ETH/USD chart suggest a continuing downtrend. This bearish sentiment is further compounded by the market's current volatility and indecision, as evidenced by the fluctuating trade volumes and price ranges.
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Frequently Asked Questions
Are You Ready to Invest in Gold?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. If you are unsure of which option to invest in, consider both.
Gold is a safe investment and can also offer potential returns. It is a good choice for retirees.
While most investments offer fixed rates of return, gold tends to fluctuate. As a result, its value changes over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. You should just factor the fluctuations into any overall portfolio.
Another benefit of gold is that it's a tangible asset. Gold is much easier to store than bonds and stocks. It is also easily portable.
As long as you keep your gold in a secure location, you can always access it. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
You'll also benefit from having a portion of your savings invested in something that isn't going down in value. Gold usually rises when the stock market falls.
Gold investment has another advantage: You can sell it anytime. Just like stocks, you can liquidate your position whenever you need cash. You don’t even need to wait until retirement to liquidate your position.
If you do decide to invest in gold, make sure to diversify your holdings. Don't place all your eggs in the same basket.
Do not buy too much at one time. Start by purchasing a few ounces. You can add more as you need.
Don't expect to be rich overnight. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
And while gold might not be the best investment for everyone, it could be a great supplement to any retirement plan.
How much gold do you need in your portfolio?
The amount you make will depend on the amount of capital you have. A small investment of $5k-10k would be a great option if you are looking to start small. You could then rent out desks and office space as your business grows. Renting out desks and other equipment is a great way to save money on rent. Only one month's rent is required.
It's also important to determine what type business you'll run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. So if you do this kind of thing, you need to consider how much income you expect from each client.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. Therefore, you might only get paid one time every six months.
You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.
I suggest starting with $1k-2k gold and building from there.
How much of your portfolio should be in precious metals?
To answer this question we need to first define precious metals. Precious metals refer to elements with a very high value relative other commodities. This makes them valuable in investment and trading. Gold is currently the most widely traded precious metal.
There are many other precious metals, such as silver and platinum. The price for gold is subject to fluctuations, but stays relatively stable in times of economic turmoil. It also remains relatively unaffected by inflation and deflation.
All precious metals prices tend to rise with the overall market. However, the prices of precious metals do not always move in sync with one another. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. This is because investors expect lower interest rates, making bonds less attractive investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors favor safe assets like Treasury Bonds, and less precious metals. These precious metals are rare and become more costly.
Diversifying across precious metals is a great way to maximize your investment returns. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
How much should I contribute to my Roth IRA account?
Roth IRAs allow you to deposit your money tax-free. The account cannot be withdrawn from until you are 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, your principal (the original deposit amount) cannot be touched. This means that you can't take out more money than you originally contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule states that income taxes must be paid before you can withdraw earnings. Also, taxes will be due on any earnings you take. For example, let's say that you contribute $5,000 to your Roth IRA every year. In addition, let's assume you earn $10,000 per year after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. You would have $6,500 less. This is the maximum amount you can withdraw because you are limited to what you initially contributed.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. You would also lose half of your earnings because they are subject to another 50% tax (half off 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types: Roth IRAs that are traditional and Roth. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. You can withdraw your contributions plus interest from your traditional IRA when you retire. There is no limit on how much you can withdraw from a traditional IRA.
Roth IRAs don't allow you deduct contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal limit, unlike traditional IRAs. It doesn't matter if you are 70 1/2 or older before you withdraw your contribution.
How does a gold IRA account work?
The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.
You can purchase physical gold bullion coins anytime. To invest in gold, you don't need to wait for retirement.
An IRA allows you to keep your gold forever. Your gold holdings won't be subject to taxes when you pass away.
Your heirs will inherit your gold, and not pay capital gains taxes. Your gold is not part of your estate and you don't have to include it in the final estate report.
To open a IRA for gold, you must first create an individual retirement plan (IRA). Once you've done that, you'll receive an IRA custody. This company acts as an intermediary between you and IRS.
Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual reports.
Once your gold IRA is established, you can purchase gold bullion coins. Minimum deposit required is $1,000 If you make more, however, you will get a higher interest rate.
Taxes will be charged on gold you have withdrawn from an IRA. If you're withdrawing the entire balance, you'll owe income taxes plus a 10 percent penalty.
However, if you only take out a small percentage, you may not have to pay taxes. There are exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
It's best not to take out more 50% of your total IRA investments each year. A violation of this rule can lead to severe financial consequences.
What precious metals do you have that you can invest in for your retirement?
Gold and silver are the best precious metal investments. Both are easy to sell and can be bought easily. They are a great way to diversify your portfolio.
Gold: One of the oldest forms of currency, gold, is one of mankind's most valuable. It's stable and safe. Because of this, it's considered a good way to preserve wealth during times of uncertainty.
Silver: Silver has always been popular among investors. It's an ideal choice for those who prefer to avoid volatility. Unlike gold, silver tends to go up instead of down.
Platinium: Platinum is another form of precious metal that's becoming increasingly popular. It is very durable and resistant against corrosion, much like silver and gold. It is, however, more expensive than its competitors.
Rhodium – Rhodium is used to make catalytic conversions. It's also used in jewelry making. It is also quite affordable compared with other types of precious metals.
Palladium: Palladium is similar to platinum, but it's less rare. It's also less expensive. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
Is gold a good choice for an investment IRA?
Any person looking to save money is well-served by gold. You can also diversify your portfolio by investing in gold. But there is more to gold than meets the eye.
It has been used as a currency throughout history and is still a popular method of payment. It is often called “the most ancient currency in the universe.”
But gold is mined from the earth, unlike paper currencies that governments create. It is very valuable, as it is rare and hard to create.
The supply and demand factors determine how much gold is worth. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. This results in gold prices rising.
The flip side is that people tend to save money when the economy slows. This causes more gold to be produced, which lowers its value.
This is why gold investment makes sense for both individuals and businesses. You'll reap the benefits of investing in gold when the economy grows.
Your investments will also generate interest, which can help you increase your wealth. Plus, you won't lose money if the value of gold drops.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
External Links
bbb.org
cftc.gov
finance.yahoo.com
investopedia.com
How To
The History of Gold as an Asset
From the very beginning of time, gold was a currency. It was universally accepted and loved for its beauty, durability, purity and divisibility. It was also traded internationally due to its high value. However, since there were no international standards for measuring gold at this point, different weights and measures existed worldwide. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.
In the 1860s, the United States began to issue American coins made from 90% copper, 10% Zinc, and 0.942 Fine Gold. The result was a decrease in foreign currency demand, which led to an increase in their price. This was when the United States started minting large quantities of gold coins. The result? Gold prices began to fall. Because the U.S. government had too much money coming into circulation, they needed to find a way to pay off some debt. To do this, they decided that some of their excess gold would be sold back to Europe.
Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. The value of gold has significantly increased since then. Although the price of gold fluctuates today, it remains one of your most safe investments.
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By: Jamie Redman
Title: Ethereum Technical Analysis: ETH Faces Downward Pressure; Bearish Trends Emerge Amidst Market Volatility
Sourced From: news.bitcoin.com/ethereum-technical-analysis-eth-faces-downward-pressure-bearish-trends-emerge-amidst-market-volatility/
Published Date: Fri, 15 Dec 2023 14:15:21 +0000
